After two years of negotiations Microsoft and the Hyundai-Kia Automotive Group announced today that beginning in 2010 Hyundai and Kia vehicles made for the North American market will offer infotainment systems powered by Microsoft Auto software.

The announcement was made while Bill Gates, chairman of Microsoft, was in South Korea to meet the new president Lee Myung-bak. The system, to be co-developed by the two companies, may be included in all models with both premium and entry level versions.

Oles Gadacz, spokesman for Hyundai said, "We can develop different pricing points for specific markets." Hyundai-Kia is the first of the Asian automakers to have a Microsoft-powered system, the current supplier of the Sync system for Ford Motor Co. As there is no exclusivity clause, Microsoft is free to seek similiar arrangements with other car makers.

Comparing the infotainment system to mini-PCs, the as-yet-unnamed Hyundai system will be upgradeable and will definitely include screens and navigational capabilities. "Microsoft Auto software has a broad set of capabilities," said Velle Kolde, spokesperson for Microsoft. "It depends on what hardware you want to make it into, the cost you're willing to put into the vehicle and geographical preferences."